01204380038 syddall@pbsyd.co.uk

Brexit cross-border tax complexities cost UK economy £47bn

20th May 2022

Cross-border tax complexities with the EU cost the UK economy £47.6 billion in lost revenue last year, according to fresh data from the Centre for Economics and Business Research (CEBR).

The stresses of navigating complex regulations post-Brexit continues to hold back growth for UK exporters, with an average revenue loss of 16% on total EU exports in 2021.

With little set to change, the research predicts that the investment loss due to complex tax compliance will cost the UK a further £16.1bn by 2026.

Nina Skero, chief executive at CEBR, said:

"If the EU was part of the domestic market, exporters were set to make just over £300bn in revenue, instead of the £252bn they actually earned."

According to Skero, export activity that did take place came with a higher administrative cost, causing an additional loss of £386 million in gross value added.

She added:

"These firm-level losses are impacting economic growth prospects, preventing an estimated £8.7bn worth of investment which could support GDP by a further £16.1bn in the longer-term.

"This means that if UK businesses were unhindered by EU cross-border tax complexity UK GDP in 2026 could be 0.63 per cent higher."

Talk to us about your business.

Get it on Google play Available on iTunes

 ICAEW

 

    Iris Logo      2020 Innovation logo 

BAS Logo        ACIE Logo Sage Accountants Club logoVouched For logo KashFlow Quickbooks Pro Advisor LogoXeroFreeAgent